Q1 20/21

Jul 29, 2020

Ladies and gentlemen, good day, and welcome to Semtech's Realities earnings conference call for q four FY twenty twenty and q one FY twenty twenty one. We have with us today, mister Kamal Khetan, the chairman and managing director of the company along with the senior management team of SunTech comprising of mister Manoj Jagarwal, chief financial officer, mister Prashant Chawbe, head of corporate finance, and mister Rona Krathi, AVP, investor relations. Please note, this call will be for sixteen minutes. And for the duration of this conference call, all participant lines will be in the listen only mode. The conference is being recorded and the transcript for the same may be put up on the website of the company. After the management's discussion, there will be an opportunity for you to ask questions. Before I hand the conference over to the management, I would like to remind you that certain statements made during the course of this call may not be based on historical information or facts and may be forward looking statements including those related to general business statements, plans, and strategies of the company, its future financial condition, and growth prospects. These forward looking statements are not based on the expectations and projections and may involve a number of risks, uncertainties, and other factors that could cause actual results, opportunities, and growth potential to differ materially from those suggested by such statements. I would now like to hand the conference over to mister Ketan, chairman and managing director of the company. Thank you, and over to you, sir. Good evening, everybody, and welcome to the earning calls for the fourth quarter of the financial year twenty twenty as well as the first quarter of the financial year 2021. Thank you for joining us. Before I share few updates, I sincerely hope all of you are safe and fine. The ongoing COVID nineteen pandemic for the last four to five months has significantly impacted the economy across industries. The quarter going by has been the most unprecedented and challenging one so far. On the macro side, we are seeing few things, uncertainty in the business and employment could lead to near headwinds. On the flip side, the interest rates for housing are extremely low and affordability is attractive. The importance of having a nice home in a work from home environment is positive. We are observing a major shift from wanting to buy under construction to wanting to buy ready or near ready inventory. More by luck rather than design, a majority of our inventory is now ready or near ready. We have been positively surprised by the kind of presales we have been able to do, and most of it is driven by either finished or close to finished inventory, such as in our projects like Suntec City Avenue 1, Signia High at Burioli and Signia Waterfront in Ayululi. We have also seen a significant momentum at SunTech World, Nygong Phase 1, SunTech Westworld, which is is near ready and affordable, hence most resilient. During the lockdown, we shifted gears to launch a digital platform, SunTech Air, that accelerated the sales momentum. Despite the pandemic, during the complete lockdown in MMR, we were able to do book healthy presales. All are under under construction site now have resumed, and we are on track to returning to pre lockdown activity level by next month. It is opportune time to offer ready to move in inventory given the current demand trend. It is important that we continue to focus on our construction progress, which in turn will lead to stronger revenue recognition as well as generate steady cash flow in coming quarters. GST demonetization, RERA, MBSE crisis and now COVID-nineteen is only going to increase the pace of consolidation in estate the industry. Developer with weak balance sheet have multiple challenges, lack of liquidity to complete the projects and non availability of fresh capital. Lenders are not willing to offer home loans to buyers of unorganized developers, and there is a tremendous distress on the street. Our brand recall, quality, execution track record and balance sheet strength positions us to be one of the biggest beneficiaries and increase our market share. We intend to capitalize on the opportunity at hand, setting the stage for further sustainable growth and attractive ROE. Our recent acquisition of Versailles is a step in this direction. Similar to our strategy to enter Vandakula Complex, VKC and ODC at Gurigao West and the Ngauga Market, Versailles will evolve into our fourth growth engine as it offers a big demand potential in an untapped micro market. With a focus on middle income group, we intend to offer well designed apartment unobstructed CU catering to emerging customer need of residential premises that not only offer a luxurious lifestyle but also ensures a comfortable work from home environment. On that note, I would now like to take the handover the call to our CFO, mister Manoj Adarwal, who will take you through the operational and financial numbers for both the quarters. And as always, I'll be happy to answer any of your questions that you may have during the conference call. Over to you, Manuj. Thank you, sir. Good evening, everyone, and thank you once again for joining us today. Now I would like to run you through the financial and business performance number of our fourth quarter of financial year 'twenty, full year financial year 'twenty and Q1 of financial year twenty twenty one. I'll begin with the operational performance numbers. We recorded pre sales of INR608 crore in quarter four of financial year 'twenty, which is a 110% increase year on year as compared to INR289 crores in quarter four of financial year 'nineteen. Pallavi's sales in financial year 'twenty stood at INR121 crore, which is a 2% increase year on year as compared to $12.00 2 crore last year. In terms of distribution mix of quarterly pre sales of INR $6.00 8 crore, Nycom pre sales stood at INR $6.80 crore, while Odyssey contributed INR 6 crore in BKC when it finished was cancelled for INR 31 crore and balance INR 3.2 crore spread across other projects. In Q4, we sold INR $17.72 units in Naida, three units in Odyssey and one in Signia Waterfront. Achieved collection of rupees 715 crore in financial year against rupees $6.61 crore, which is 8% crore as compared to financial year 'nineteen and rupees 175 crore for Q4 of FY 'twenty against INR160 crore in previous year and INR207 crore in previous quarter last year. In terms of financial highlights, we reported consolidated revenue of INR608 crores in FY 'twenty is against INR857 crores in last year. Our consolidated revenue in Q4 of FY 'twenty was INR92 crores against INR198 crore of FY 'twenty and INR $2.70 crore of Q4 of FY 'nineteen. On the EBITDA front, the consolidated EBITDA for FY 'twenty is INR 163 crore is against INR $3.78 crore in the last financial year. We recorded consolidated EBITDA for Q4 at INR9.2 crore is against INR50.2 crore of Q3 and INR78.8 crore of Q4 of financial year 'nineteen. Our consolidated EBITDA margin in financial year 'twenty is at 28% compared to 44% last year because of changing revenue mix. With respect to profit after tax, we reported INR1 crore in Q4 against INR33.6 Ladies and gentlemen, the line for the management has got disconnected. Please stay connected while we reconnect the management. Ladies and gentlemen, thank you for patiently holding. We may have the lines of the management reconnected. Over to you, sir. I'm extremely sorry about this. We actually had some logistics problem. We are back live. Let me sincerely sorry about this. Hang on. Yeah. So I'll start from the operation number. We recorded presales of rupees 608 crore in q one of f y twenty, which is a 110% increase year on year as compared to rupees 289 crore in q four of f y nineteen. Other pre sales in FY twenty stood at rupees $12.21 crore, which is a 2% increase year on year as compared to rupees 1.02 crore last year. In terms of distribution mix of quarterly pre sales of rupees $6.00 8 crore, Naga p sales stood at rupees 680 crore, while ODC contributed rupees 6 crore. BKC, one unit was canceled of rupees 81 crore, and balance rupees 3.2 crore spread across other projects. In q four, we sold 100 and 1,772 units in Nida, three units in Odyssey, and one in Sydney Waterfront. We achieved collection of rupees 715 crore in f y against f y twenty against rupees 661 crore, which is a 8% growth as compared to financial year 2019. And rupees 175 crore for q four of FY '20 against rupees 166 crore in previous quarter and rupees 207 crore in previous quarter last year. In terms of financial highlights, we reported consolidated revenue of rupees $6.00 8 crore in FY twenty versus rupees 8 rupees 857 crore last year. Our consolidated revenue in q four of FY '20 was at rupees 92 crore against rupees 198 crore of q three FY '20 and rupees 270 crore of q four FY '19. On the EBITDA front, the consolidated EBITDA for FY 'twenty is rupees 163 crore as against rupees $3.78 crore in the last financial year. We recorded consolidated EBITDA for q four at rupees 9.2 crore, evidence rupees 50.2 crore of q three and rupees 88.8 crore of q four of FY '19. Our consolidated EBITDA margin in FY '20 is at 28% compared to 44% last year because of changing revenue mix. With respect to profit after tax, we recorded within INR 1 crore in q four against INR 33.6 crore in the previous quarter. We have reported paid of rupees 101 crore in FY '20 is against rupees 241 crore in last year. Our consolidated paid margin for FY '20 are at 17% compared to 28% last year. I also want to touch upon on the cash flow statement for FY '20. Our cash flow generated from operation before tax and after investment in business development for the year stood at rupees 7.3 crore, and after tax, negative rupees 34.6 crore. Now I I would also like to run you through the financial and business performance number for the first quarter of financial year twenty twenty one. I'll begin with the operational performance numbers. First, pre sales in the first quarter stood at rupees 101 crore compared to rupees 185 crore last year same quarter. In terms of distribution mix of quarterly sales of rupees 101 crore, it's 40% of the Odyssey, 48% in Maiga, and the balance in other projects. Unit wise, breakup is 21 units in Odyssey at 123 units in Naga and seven units in Signia Waterfront. We also achieved collection of which is 65 crore in first quarter compared to rupees 189 crore in q one financial year twenty twenty. In terms of financial highlights, we reported consolidated revenue of rupees 61 crore in q one of financial year twenty twenty one. This is decrease of 34% q on q against rupees 92 crore of q four financial year twenty and decrease of 66 plus 66% y on y is against rupees 178 crore of q one financial year twenty. On the EBITDA front, the consolidated EBITDA for q one at rupees 10 crore is against rupees 9 crore of q four financial year twenty twenty. Our consolidated EBITDA margin for the first quarter of financial year twenty one is at 70% 17% compared to 10% last year. With respect to profit after tax, we recorded rupees 3 crore in q one as against rupees 1 crore in the previous quarter. We can now open the form for questions from the participants. Thank you very much. Thank you. Ladies and gentlemen, we will now begin with the question and answer session. Anyone wishing to ask a question, please press star in one on your touch tone telephone. If you wish to remove yourself in the question queue, you may press star in two. Participants requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Adadej Chattopadhyay from ICICI Securities. Please go ahead. Yeah. Thanks. Good evening, everyone. Thanks for the opportunity. The first question on our VKC cancellations. Like, could you just explain this for how many units has it been and what is the accounting impact? And are you and do we expect any more cancellations in the first or second quarter of this year depending on what visibility you have? Second. Are we audible? Yeah. Yeah. Yeah. Can hear you. One second. We are trying to switch on to the other phone because of this logistic problem which happened. Let us Sure. Sure. For a second. That's it. Yeah. Yeah. So okay. Can you hear me? Yeah. Yeah. Can hear you. Prashanti. Right? So in we have canceled one unit in Signature Island, which is up to the value of 81 crores, and that is what has been written down in the fourth quarter of financial year 02/2020. Which was sold in q two. Which was sold in q two. Okay. Okay. And just on that follow-up, what is there? Any any further concern or is this at one of your team? Right now No, ma'am. So, Aditha, obviously, this was just pre COVID. The deal was in q two, and the deal was going through. And with the the, that this is one off, I can say. Obviously, there we we we don't expect any more to happen. Okay. Sure. So just and second question is now after COVID, so what is the plan now for our ODC commercial, the 3,000,000 square feet? How do you do you how do you look at the project mix and now time lines for the project? Yeah. Thank you. Great. Aditya, obviously, we we will we want to be obviously cautious after this comment. It is, again, by luck, I would say. We were in fact, it was our due to the approval, delaying getting the approval. In fact, on the hindsight now, it has turned out to be lucky for us that we didn't start the project. In fact but we would definitely want to see the market post once this COVID thing gets over for three to six months. And if we see the demand continues to be there in the commercial segment, we will go ahead and do commercial out there. If we don't see the demand, we will we have a plan too. That is definitely we can start we can start looking at residential in that in that sector. So the Fifth Avenue, which we call, where we were going to do commercial. So we can partly start with residential instead of commercial. If we feel that commercial demands goes down completely after post COVID, but we want to wait and watch for next three to six months. Okay. Fine, sir. That's helpful. I'll come back in the queue. Okay. Thanks. Thank you. The next question is from the line of Ritesh Gandhi from Discovery Capital. Please go ahead. Yeah. Hi. It was given we are, like, we are actually located in MMR, which is pretty much under hardcore lockdown in q one. Miss, can you just explain to us how we were able to do the presales of 100,000 plus and also the trajectory we are seeing between April, May, June and also as we've got going to late July, August, how the presales is looking and how the, you know, market's looking? Vijay. Definitely, when there was a complete lockdown in MMR, in spite of that, so the whole I think the which one of the biggest thing which helped us that we started immediately, the online platform within after the lockdown, within fifteen days, we tried to put our online platform, and it we we marketed it as SunTech Air. And we put it up. We felt that there should be some demand, we didn't want it to keep our sales team idle. And in fact, we were also really pleasantly surprised. We thought that, okay. We'll at least keep our base team busy and try to do some sales than rather doing nothing. In fact, we were pleasantly surprised after seeing the demand. And we as I spoke in my speech before in my commentary that the most of the demand we could see was coming for the people who have like, in lockdown, they feel the people who are on the leave and license or they are not have they don't have room, and and now the work from home has become maybe the people going forward, we'll see lot more and more, like, work from home are happening. Many companies infecting that at least 25% of the staff, some of the departments have worked from home. I think this has made people, people who are friends cheater or were not buying home and waiting for the correction because pre COVID also the market was not so good, for real estate. So post COVID, people say that, obviously, now people feel this is the bottom, and now it's the right time to buy a house, and they feel so we see a good demand, and that's why we we could do good sales. And not only that, if you look at the current quarter, can share that till July, we have done sales. And looking at the current sales, we I won't be hesitant in saying that I'm pretty confident we might or this q two might surpass the corresponding q two of the last year pre sales. So we are seeing that kind of demand, especially in ready to move in product or near near ready to move in products. Oh, okay. Fine. Got it. I understand. Interesting. Interesting. And see and and the other question was if you could just highlight some of the, actually, economics of your recent acquisition in Versailles. You know, we thought, I mean, the press release of the potential $5,000 of revenue. If you could just give us a actually, actually, a broad view of how much of that will be shared, how much of that would be our cost, in turn, effectively, how how you think about this project as a whole in terms of equity IRR and also in terms of absolute property? So will, Riddhay, I will give you some what is the reason, obviously. We as you see that we have always tried to go when we take a big project, we are very particular about the location. We do a lot of research before we get into any location. If historically, you see, we have gone to BKC and then ODG and then the Nygong. So we have explored such new locations, and then we saw there is an untapped demand, which is there and which can be tapped even in any market that outperforms. So while doing this, we obviously see this, Wasei Market, which is the which is one of the cost location of the Wasei and which has a very beautiful, seabed view from this property, a sea view. And we definitely wanted to tap this. And this is, again, a satellite model. And I think we got, in fact, a better deal than what we did for Nygong because of the current market conditions. So almost like 25% of the top line. This is a micro market, which is more expensive than Nidao. And still, in Nidao, like, we give close to 25 of the top line in Nygon. And if this market being in spite of being expensive than the Nygon market, we will still continue to give almost similar 25% of the top line to the landlords. And in looking at IRR numbers and other things, I think, Ronak, can you explain in detail? Sure. So in terms of top line, as we mentioned in our press release as well, we are looking at close to INR 5,000 crores. Our share will be closer to 3,750 crores out of that if you do a simple math of 75%. This, in terms of structure, is very similar to our priorities. So we are only responsible for execution, sales and marketing. All land related premiums as well as approvals are to the account of the landowners. So our limited cost will be only to the user INR $12.50 crores, which is for execution. We are looking to realize a surplus of about INR 2,500 crores on a project life cycle of about five to seven years. In terms of margins, we expect this to be close to between 25 to 30%, typically in range for this pricing. Got it. So you should I think our share of the plus from actually in Versailles after cost could be 2,500 crores? Yes. That's correct. And over how many years you think of the power of We are looking at profit life cycle of about five to seven years. Got it. And just a last question is that are there other acquisitions actually actually, you know, like this, which we are canceling or we will go slowly to bite size, like, actually, actually, proceed? Sir, Vikram, here, once again. So definitely, because we are we we are we want to be very aggressive at the same time very, very cautious. So you can understand that's why we are very clear. We are doing asset light. We won't stress our balance sheet. But I can tell you, we are looking at a similar kind of project without putting balance sheet under pressure. We will continue to do some aggressive cautious acquisitions. Got it. Understood. Thanks and all the best. Thank you. Thank Thank Rilak. Thank you. The next question is from the line of Puneet Gulati from HSBC. Please go ahead. Yeah. Thank you so much for the opportunity, please. On this website, how many million square feet will that add to your portfolio? So hi, Puneet. Okay. So it will add almost 4,500,000 square feet. Okay. Okay. So, basically, you're looking to sell half a million square feet every year in in in that location? More than half? Yeah. Nylon, typically, we sell close to a million square feet every time we launch, which is in a year twelve to fifteen months. Yeah. So we are looking half of it to be sold 50% of that kind of volumes for for Versailles. Right. Good. So this is very interesting. You know, you guys are going to places like Naga, Versailles, and and, obviously, doing very well. The deal looks good, your performance on Naga also is quite impressive. What is it that you're doing differently versus some of the other guys who would also be seeking to enter these markets? What what is the competitive advantage that you have there? I think, Puneet, definitely, it is today, everything is very your your brand and the performance and the financial strength. Yeah. So I think these three put together, I think, and also the execution track record. So if you maintain brand, that means, you know, everything comes into underlined. Obviously, you have to be financially disciplined, your strong balance sheet. And I think and we have one more thing we always if you must have seen our track record, like, we have not rushed for the desperately gone and did some acquisitions. We have been very, like, whenever we did acquisitions, we have done a lot of research on that location before entering any location. So historically, even if you see, so since SunTek has gone since 2007 or 02/2006, 'seven, always whenever we have gone big on any any location, which is we have created that into a we are taking that territory into a different zone, that particular micro market. Okay. Secondly, if you can give some color on what is your inquiry momentum in the current month, July, for your ODC portfolio? Because I thought it was a very interesting portfolio pre COVID. Do you think that portfolio might become a disadvantage given that people might ask for slightly bigger homes? No. I don't think so because, in fact, the most of the inventory what we sold right now Mhmm. Is mean, second second to Nygao is ODC, which is which is our all the three phases for phase one, phase two, and phase three. So, obviously, phase three, which is the Fourth Avenue, the inventory sold post COVID, is negligible because it is just under construction, and it starts started the construction. And it will the project will be delivered for next after two point five to three years. Whereas the every one and every two, first phase and second phase, which is almost completed and near completion, where we have seen a good demand, an excellent demand, and we continue to see that robust demand. And that's why we are putting all our strength, I would say, to do execution and keep the execution at the fastest speed as possible. Puneet, Ronak, can I just point to point because you spoke about larger homes? In fact, in the last quarter or two, we have also seen a lot more inquiries in Avenue 1 because, relatively, there, the apartments are slightly bigger. And that also being nearing completion becomes a very attractive proposition for the customers as well. So also larger homes and affordability. So that is also a key thing. So if you give a larger home in Gauri now, which is worth, like, 5 crore, 6 crore, obviously, then how much affordability you can look at? So and how how many apartments you can sell? So definitely, have seen in July a great demand. Again, What we could not sell in last two years, that kind of momentum just in July, insignia high. We are seeing that kind of demand, which is completed for certain as, rightly, what you speak, large homes. These are large homes. So and but not too much of the inventory, like not two two hundred, 500 apartments, which are like the balance apartments are just thirty, forty. So I see that market in every micro market for that kind of a product, but not more than forty fifty. So that is a ticket size of 5 to 6 crore in Bodhi Bodhi. But that ticket size, you can't have four you can't sell 400 or 500 apartments, but you can definitely sell thirty, forty apartments. Unfortunately, by luck, we only have that thirty, forty apartments, and we are so confident that what we didn't sell in last two years, we may end up selling in this month or maybe next month. So that's how the demand which we are seeing. It's lot of exciting time. Let me just check. What is also interesting is that for the ODC side, you actually actually did higher number of sales in q one versus q four. Correct. Is there is there something to read into it, or would you comment what what was different in q one? So that's what so it's so post COVID, that's what I'm that's what I'm trying to say. We have been selling more in post COVID than with ready inventories Okay. Than than than pre COVID. That is what we are seeing the difference. Okay. And in this 40 crore, said bulk of it would be already one and two? So the so in center city, 80 90% is in Avenue 1 And 2 post COVID. Okay. Okay. Interesting. That's it. Thank you so much. Thank you. You. We will go on to the next question that is from the line of Prem Kurana from Anandrati. Please go ahead. Thanks for taking my questions, sir. Two questions from my side. So one was eventually, I mean, when I look at the acquisitions that is done in the recent past, and we've done three that has been announced officially. So one was on the reverse, and then we had Nygaon, and we have this website. So are these two things to be kind of extended server? So is it by design that you've been able to manage these or you are I mean, working towards kind of adding more on extended suburbs because you get to have larger layouts wherein you'll have option to be able to have design your product as per your discretion. Whereas when you look at some of these suburbs, you tend to have some restrictions in terms of SSI usage as well as in terms of the kind of size that you'll be able to get. So by design design separately, we we would not like to enter certain micro markets. I would not like to name, but there many of the developers are there, and they are pulling their fingers, and they are not able to sell even a single apartment. So there we see there is a demand which is there, and we we do our research. That's what I said. Nigam, there was no one who tapped Nigam or no one tapped BKC as a residential or there was no demand in ODC. But we saw that there is a demand which is there, which is untapped. So similarly, in that micro market of Bursai, we see a huge potential of demand which is untapped by any organized player. So we like to go in those micro market. We don't like to go where everybody else is going just by we also go by default in that micro market. So we have been very selective. And I can say, fortunately, we have been lucky and what we want with the hard work, we get it finally. Otherwise, if it's not necessary, then you do all the hard work and you get it. So what has been kind, I would say we have been also lucky for that lucky in getting that. Just to understand it better, sir, when you evaluate or rather when you look at growth opportunities, do you go do you tend to go with the mind that I wanna have this much area in that before boring only and then these many millions per week after boring only or we have no such restrictions and we are free? And if it is as a competitive charge strategy, we are open to going to take up more on beyond Bodhi with the projects. So definitely. So we are open to take where we feel there is enough demand. We'll continue to do aggressive, but definitely cautious in current times acquisition on a satellite mode. And we will we see there is a huge potential, and there is a lot of distress in the market. So at the same time, we want to be aggressive, but again, very, very cautious. Just a last on my end. On on the latest launch, I mean, any timelines in mind, especially given in in the backdrop of COVID? I mean, as you said, it is likely that the demand seems to be much better for the near complete or ready to move in. Would it would that make you kind of push that launch to a date that it's farther in the future now? I mean, eventually, they were trying to launch it this year. Could it be pushed to next year? We are going ahead with the launch this year. So we will definitely continue to keep our launches on. We are not like we'll not like to delay. Maybe we may we may see not that much of a demand for under construction, but but it's not that there is no demand construction. For a good developer, organized developer, there is enough demand for under construction. But if there is any demand which goes down, obviously, in under construction, I think more than that, which will be compensated by selling the ready inventory with the cash flow coming up front. I think that is a key key point which which we should understand, which is a big, big benefit for the company, I think. And I will be more keen in selling the ready inventory. That does not mean that I will not sell or not launch any new project, but we are anticipating let us let us accept and understand that. Suppose pre COVID, will sell, like, say, 100 apartment, I wouldn't be surprised. Now in the in the same launch, maybe under construction, we may end up selling only 60% or 70% of it. It's hundred hundred versus only 60% or maybe 100 versus only 70%. But I think more than that, it will be compensated that 30% loss or 40% loss will be compensated by selling the ready inventory, which was not moving out for quite some time and which was building up in our portfolio. In fact, that is a great that has come as a great advantage, I think. I think that answers my question. Yeah. That answers my question. I have few more income. Thank you. Thank you so much. Thank you. Thank you. We'll move on to the next question. That is from the line of Savath Karganesh from Modila Lothwal. Please go ahead. Yeah. Hi, Kamil, sir. How are you? Hi. Hi. Hi, Sadat. Yeah. Sir, first of all, congratulations on, you know, showing some fantastic presales and collections in an otherwise very lackluster environment for the real estate industry. I just had some questions on our new project in. If you can just share what is our vision in terms of what will be the ticket size over there and what kind of customer profile that we are looking at? Because I understand this location is very far away from the railway station. So you must have thought of what kind of customers you will be looking at. And can you share some of your broad overview on this? So we are looking definitely, Sagar, at a mid income growth segment, which is which are quite which is the demand in that micro market, what we studied. And so what we are selling in Nygao is a ticket size, which is like for 35 lakhs to, let's say, 35 lakhs, one BHK to three BHK, which is $65.70 lakhs in in Nydong. Here, what we are looking at, two BHK, which is, like, $45.50 lakhs to going up to 3 BHK, which may go up to like less than a crore, which is near between something between 75 lakh to a crore. So I think that that macro market has enough potential for this kind of and this is this may be slightly a weak conversation, but this this is this will complement something like for a two for a Andheri or Villa Prabhle area or a Lukanwala for a Andheri location. This will be something similar demand which we go in that micro market of Bashayi, something which we create a luxury in that micro market. There is a huge demand for that kind of a product there. Sure. And given that we are seeing a good traction for ready to move in apartments, and this is going to be a greenfield project. So, how do you see the sales velocity picking up for this project? We will be doing presales for under construction, and the the construction we will be doing in house for this? So we have across all our brand. In fact, if you see, we have construction in house only. So whether it is our top end, which is Uber luxury signature brand or a Signia brand or a Nylon construction or the city construction. It is all in house. So this comes something between city and the world, I would say. This is something a product which is slightly lesser expensive than the city going down product, and it is more expensive, slightly more expensive than the Down. So I think there is no reason why should we outsource the construction when we have enough good capability of constructing in house. I don't see any reason why it should constructed to the third party. Salar, Rohit here. Just one more thing. From a customer perspective, large organized players will continue to be the preferred mode for buying when looking at new projects, right? So even though we'll be offering it as an under construction project, I think somewhere the customer will also deny comfort from our balance sheet strength and our ability to deliver. So we don't really foresee it to be a challenge per se from that perspective. And more than that, we have only considered half of the volume of Nylon. That's why we have already taken that thing into consideration that whatever we have sent in the past, whatever we have sold in Nylon, let's say, almost 1,000,000 square feet during the launch versus which we will every year, we'll only sell in every launch 500,000 square feet. So I think that we have already taken it quite conservative. Right. Thanks a lot. That's helpful. And like I said, in a dull environment, we are showing such encouraging numbers, and we'll be excited about what we can achieve when the master three covers. So best wishes, sir. Thank you. Thank you. Thank you, Sadhir. Thank you. We'll move on to the next question. That is from the line of Bipla Bip from Anti Stock Broking. Please go ahead. Good evening, sir. Good evening, everyone. My first question is on the cash flow features. Just trying to understand the cash flow situation. If we agree, there is no incremental sales in FY '21. How would cash flow situation would be? Like, what is your total receivable, cost management cost to be incurred, fixed cost, interest and debt debt repayment in FY 2021? Just trying to understand the cash flow situation. Good evening, This is Prashant Desai. Yes, sir. First of all, I would like to mention that the situation of no sales doesn't arrive because in the first quarter, we have already done 100 crores worth of sales and that too in a lockdown environment. So from that perspective, the first the question of no sales doesn't arrive. So that is the first point I want to clarify. Secondly, sir, on the on the on the on the debt side, I can tell you that our debt levels are one of the best in the industry. Our debt equity ratios today stands at 0.26 net debt to equity ratio, and our total debt is around INR $7.50 crores, total net debt. Coming to the receivables, our receivables from both completed nearing completion project is to the tune of INR 1,100 crores. And against that INR 1,100 crores, we have to have to incur only INR 300 crores of cost. So balance, INR 700 crores is free cash flow for us. This is committed receivables I'm talking about. And from projects which we have launched in the last two quarters, we have a total receivables of close to 800 crores against which we have to spend 650 crores. So all in all, if you see my total net cash flow from committed receivables will be close to 930 crores. And over and above this, I'm sitting on a invent unsold inventory in these two brackets of close to 3,500 crores. So over the next two to three years, you will see this 4,500 crores of potential getting that. In this, I am not taking into account any new acquisitions and any new launches. Okay. Okay. Thanks. One more question is on the, okay? So in the year of FY 'twenty, you sold around one fifty six units. So all the units you sold are from revenue one, revenue two, or also in revenue five. What is the new new product that is? Look. Vitra five, we have sold 123 units in Fourth Avenue, and the balance Okay. Thirty, forty units, we have sold in Avenue 1 and Avenue 2. And the sales in the first quarter has been mostly from Avenue 1, the ready to move in inventory. Okay. Okay. Okay. Thanks, sir. I'll come back in with you. Thank you. We'll move on to the next question that is from the line of VP Rajesh from Banyan Capital. Please go ahead. Hi. Yeah. Hi. Thanks for the opportunity. I was just wondering, you know, earlier you would give a slide which had estimated inventory value and estimated cost. So have you discontinued that? Or will you be publishing that separately? This is Ronak here. If you've noticed, we have started updating a fact sheet on our website as well as the filings with the Stock Exchange. That will continue to be updated on a quarterly basis, which will contain all the information that you just mentioned. So that has been the change. It's being uploaded and disclosed regularly. Okay. So just on the BKC, what is the number of unsold apartments as of Q1? And what is the value which is where the balance sheet in the inventories category are issued? Sure. So the total unsold units are close to 39 units. Okay. And what is the value of those 29 units? Total unsold inventory will be 1,800 close. Anything else? Hello? Hello? Yeah. Hello? Did you get that? I said the total unsold inventory is at 1,800 crores. Yes. Thank you, Ronika. I just got that. My follow-up question was that, you know, given the way market is, what is the fit velocity you expect in BKC? Because last year, we sold only two on a net basis. So are you expecting this to pick up in this year or next year or the year after that? So that was just trying to get a sense on on that. So, Kamaria, so I definitely, obviously, looking forward to sell sell as much as units, obviously, every quarter on quarter and year on year. Obviously, we have been able to sell eight to nine units every year. Unfortunately, the last two quarters has been a bad quarter because, obviously, due to COVID. Otherwise, if you see the traffic from last more than four to five years, we have been able to maintain the velocity of eight to 10 units on every year on year basis and on every quarter, at least maybe two to three units. So going forward, we don't see any if we continue within that momentum, we should be we are confident that at least, I think, we should be able to maintain that momentum. Even even in the current financial year, you think you can sell, eight, nine units? We already lost, one quarter, and maybe very frankly, we we we we don't know nine months. This COVID will last how much time. So if this goal continues for another nine months to one year, maybe we might see lesser velocity in that. We are not very confident on the BKC product sales, to be very frank. But now as we hear from the market, even the demand has slowly started picking up in even the Uber luxury segment. So we have seen quite a few sales happening in South Mumbai, which is in the Uber luxury segment, which is like ticket size of INR 30 crores, 40 crores. So I think that is slowly picking up, and we hopefully, we should we should at least, do. If not, six, seven apartments, at least we'll try and what we are looking forward for, at least four to five apartments in coming quarters. Okay. That's helpful. My second question is, your debt has gone up year over year. So any thoughts around what it will look like by the end of this financial year? Sorry, Rajesh. You are saying your debt is one of the way you said. I really felt that it has rocketed or something. Think it is marginally going up. Obviously, we are doing new acquisitions where we are putting too much money into the constructions. We want the construction speed to be fast. And you're seeing the cash flows are very strong. So I don't think we need to worry with such a kind of debt equity ratio. If we don't have this much debt, then I think we can't get a good ROE or we will never be able to, so I mean, do good business. I think this is relatively, in fact, very cautious and conservative debt equity ratio. And we like to maintain this kind of debt equity ratio. In fact, historically, if you see Santander has been near this ratio. And we continue to continue in spite of aggressive acquisitions more, which we will get into what we are looking forward, what are seeing in the market. We don't we are not looking to increase our debt anyhow and stretch stretch the balance sheet. Right. No. Mister Ketan, I was just pointing out that you Rajesh. Sir, may be required that you return with the question queue. For the participants waiting for their time. Thank you. We'll move on to the next question that is from the line of missus Sumir Baisiwala from Morgan Stanley. Please go ahead. Yeah. Thank you, and good evening, everyone. Sir, quick question on the Wassaia acquisition, and and congrats for that. Is the selling price assumption 10,000 and construction cost 2,500? So hi, Samit. Samit here. Samit, the construction sales velocity, what we are taking is at $5.07 starting from 7 and a half thousand, 8,000 rupees per square feet, in fact. And the construction, obviously, what we are doing in Naidao and today what we are getting because we are doing in house construction because of our in house construction capability, I think today we are doing construction cost at Naida, which is close to INR 4,200. So per year, this will be a slightly one notch higher product than the Naida home. So and similar 23 storey towers. So we look at 2,500, 2,600 a square feet, and that's all. And so over a period of the lifespan of the project, we are looking to achieve 8,500 to 9,000 of square feet on a realization value, which is close to, if you look at 4,500,000 square feet, there will be some small in house retail and other components, which will give us a higher realization. And some other products what we are looking to design, which I would not like to very frankly share on this call, That will give us a on an average, we are pretty confident over the lifespan of the project, we will easily achieve anything closer to 10,000 a square feet. But we will start with close to 8,000 a square feet. Okay. Great. That's, that's very clear. And would this be attracting any tax benefit, or would this be at your marginal tax rate? No. So we are not taking into consideration any tax benefit on this. So we are talking about 25%, 30% margin that is post tax. Okay. Got it. Great. And sir, second question here is, given the current market conditions and the your balance sheet strength, is it possible to do two, three, four such deals in a year rather than one every one to two years? I will be very happy, Sameer. Try not to do two to Like, two. I will restrict myself to two or three. In fact, I will not have two or five, but on a lighter note. Sorry. But, definitely, we will look to do as much as possible. But we we want to be very selective because even if you take one wrong project, maybe you will not make loss because of the satellite model, but your bandwidth loss can be enough. That that may that may eventually lose the potential to acquire a better and good project. So we will be quite selective, but we will not stop this. In this year itself, if we get similar two or three more projects, that we will not stop that because that we will not be able to ramp up for that. We are ready for that. And if this is a once in a lifetime opportunity, I think. Unfortunately, it's a wrong moment, wrong wrong purpose. The opportunity has come due to wrong reasons, but but it is an opportunity as a business. I don't think we should we will leave it, if we get at least a similar opportunity once a day. Okay. Excellent. And sir, are you also thinking of doing such deals within the municipal limits? Or would these be out of suburbs? So we have been very clear, Sandeep, that we want to maintain MMR region is our key strength. And this proved even in this worst COVID kind of a scenario, in spite of complete lockdown, Mumbai was in complete lockdown, and we could sell we could do such kind of sales. So we are pretty confident that we want to maintain ourselves restrict ourselves in MMR region and again not lose out our bandwidth. Because if it's being in MMR region, if we can do a product of INR25 crores, why should I feel we should go out of MMR region? What is the reason? What is the compulsion? And I think MMR market is the most resilient market. We have seen this during the demand crisis. And then again, so many we have gone through so many crisis, whether it is demonetization, GST, where, blah, blah, so many things, MBSE crisis. I think this is the most resilient market except a few micro markets where there is an oversupply. And you can see we have always stayed away from those kind of micro markets. No. No. I meant within MMR, the municipal limits. So not So MMR so let's say, is again in BB and C. That is a Batesh Vira Municipal Corporation, which is not BMC. And Naida is again in BBMC, so it is not in BMC. So it's a Municipal limit, but not in the Municipal limit of funding. Okay. Okay. That's fine. Yeah. Thank you, sir. Does not come on Navi Mumbai, what we do, which is in NMMC, which is Navi Mumbai Municipal Corporation, and which is obviously TMC. So these are obviously municipal limits, but outside municipal limits. Okay. Fair enough. Yeah. Thank you so much. Thank you. Thank you, Sami. Thank you. The next question is from the line of Parvir Gupta from EDWise. Please go ahead. Hi. Good afternoon, sir. And I'm just looking for a good share of performance in q one amidst all the uncertainty that said. A couple of questions from my side. Obviously, the near term environment is pretty uncertain and challenging. But what is the kind of launches that we can probably see in FY 'twenty one across all our projects? I would definitely not like to disclose right now on this call what are the launches, but you will definitely see some launches coming up from fintech. We will not shy away because we are in so like we didn't close our sales pavilions or the sales shop during the lockdown. Almost the lockdown is now slowly, slowly getting over, and we are looking forward to do two, three launches and activations as well. Yes, sir. We are confident that good sales momentum we will see, especially in this quarter, July or September. And sir, also because of the lockdown, obviously, there will have been some disruption to our construction time line. So for our under construction project, what are the kind of construction time lines that we are now focused? So we are internally calculated. I think because of the lockdown, where there was a complete lockdown, there was no construction was not allowed. Obviously, that was close to, like, two months or so. And obviously, those two months, obviously, we obviously could not do any any construction at all. No one was allowed to do any construction. But but since we are in situ workers, the workers, they were most of the workers, we try to retain them at at the site, and we kept them well with the proper social distance distancing, providing them proper hygiene and giving them food and everything. I think we could retain many of them from going back to their hometowns. That helped us to pick up our construction site faster. And I can tell you that we are almost almost, I will not say, but still we are slightly away from the pre COVID time, but we are almost near pre COVID time. And that's what I think by the August, we will be almost we we will be, again, in fact, almost to the pre COVID level or, in fact, faster than that because we want to catch up for the loss of the time, whatever we have done during the COVID during that COVID time. So that's all. Sure. And sir, last just one data specific question. What is the inventory that we still have in ODC 1 And 2? Praveen, Ronak here. The total unsold inventory in Avenue 1 And 2 will be close to about INR $5.75 crore roughly. Thanks. That's it from my side and all the. Thank you. The next question is from the line of Sumit Kumar from MaxLife Insurance. Please go ahead. Hi. Good evening, everyone. Thanks for taking my question, and congrats on the deal. My question is on the commercial projects, particularly the BTC project that you had and the one in OBC and Naga. So what's the construction status and any update on the of the meeting? The second question is a follow-up on the OBC commercial. It's been, I think, since FY 'eighteen, since you had plans of, you know, starting it. So what was the reason for the delay in approvals? Hi, Sumit. Yeah. So coming to so commercial projects, first of all, so when we are talking about commercial projects, we have in all four to five commercial projects. Let's talk about BKC, which is BKC SunTek icon. And then the second BKC is BKC 51, SunTek BKC 51. So both those projects are under construction and at full swing. They are about a plane travel, and we are looking forward to complete those projects in next nine to ten months. So those are, again, being nearer to VKC. We don't see any problem in those and the construction. That's why we don't want to slow down. We want to maintain that same speed. And we are quite confident being because being close to VKC, I think we'll be able to get away with that. Now coming to the ODC project. So fortunately, obviously, I would say, once again, at the cost of reputation, we were lucky that we didn't get the approvals. Now there are obviously, the approval could not come. We all know there are various approvals which are required in every project. There are n number of approvals starting from environment to the ULC to to to your high rise approval, HR, CCAP, HR approval, a 10 number of approvals. I can continue to go on. Definitely, there were two, three approvals, which which were challenging. I think we are fortunate. I think we are so that's why we right now, if you see, we we we say that we we may be best in doing the construction, designing architecture, putting the right product, right right everything. But maybe I think we are slightly less efficient in getting the approval. And we want we don't mind saying that. And I think that has in this case, at least on our hindsight, this has been helpful to the company, and we have been lucky enough to take that. I think that's okay? Sure, sir. But on the mixed use projects with ODC and Nizam, what's the people? So Nizam, there is nothing called commercial. So there is a retail which we are selling, Tata sales. So or or only one or two, maybe, strategically to, get the better sales velocity, we will leave it out to a good brand. But otherwise, the idea is to do a start up fee. Retail, if we do a retail mall or something, that will be only if the things get improved, and that will that is only to complement the residential. And the price will be only that size which can take the the community which is staying in fintech world, not not that we want to do a mall and get into a mall business out there. The idea is to complement and get a get a better pricing for residential in that micro market by giving a proper good infrastructure to that entire community. That's the idea of doing residential or retail out there. Sorry. Retail retail shops and the retail mall out there. And o d ODC, we have already set the commercial. Any any any any anything which I've missed out? Okay. No. That's super. Thanks. Okay. Thank you. Thank you. Thank you. And gentlemen, that is the last question. I now have the conference over to the chairman and managing director, mister Ketan, for his closing comments. Thank you all for taking all the time from your busy schedules today. In case if any of your queries have been left unanswered, you can get in touch with me or my team. We look forward to your continued support. Thank you once again for joining us today, and please be safe. Thank you. Thank you. Ladies and gentlemen, on behalf of FanTech Realities, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines. Thank you.